What is Avalanche (AVAX)? Complete AVAX knowledge

In the initialization race blockchain Fastest, most fully featured, few major platforms came out in 2019-2020. Of these, Avalanche – an open source platform for new and decentralized financial applications – emerged as one of the frontrunners.

The article will analyze the reasons to help Avalanche stand out in an increasingly crowded industry.

What is Avalanche?

Avalanche is a new platform developed by Ava Labs that allows anyone to easily produce blockchain multifunctional and decentralized applications (dApp) of their own.

The platform is designed to solve some of the limitations of older blockchains such as slow transaction speed, centralization, scalability. They use several innovations to do that like the unique Avalanche consensus protocol that promises low latency, high throughput, and resistance to 51% attacks.

Avalanche launched its mainnet (mainnet) in September 2020, just two months after raising $42 million in an ICO sale — sold out in less than five hours.

How does Avalanche work?

At its core, Avalanche is built upon a system of three interoperable blockchains: Exchange Chain (X-Chain), Contract Chain (C-Chain) and Platform Chain (P-Chain).

In it, X-Chain is used to create new digital assets. C-Chain Deployed Ethereum Virtual Machine (EVM) of Avalanche and P-Chain are used to coordinate validators and create subnets (subnets).

A subnet is a collection of validators whose task is to reach consensus on one or more Avalanche blockchains.

Two of these blockchains (P-Chain and C-Chain) are secured by a chain-optimized “Snowman” consensus that enables high-throughput secure smart contracts, while X-Chain is secured secured by the DAG-optimized “Avalanche” consensus — a secure and scalable protocol that can complete transactions in seconds.

By splitting the architecture into three separate blockchains, Avalanche is able to optimize flexibility, speed, and security without any trade-offs. This makes it a powerful platform for both public and enterprise use cases as developers can flexibly build a wide variety of applications.

This platform revolves around AVAX, the native utility token for the Avalanche ecosystem and used to pay for network fees, staking, and provide the “base unit of account” between Avalanche subnets.

What's special about Avalanche?

According to Ava Labs, the platform can process 4,500 transactions per second – compared to about 7 transactions per second for Bitcoin and 14 transactions/second for Ethereum. It can also complete the transaction in less than 3 seconds. With these parameters in place, the platform becomes more suitable for highly scalable decentralized applications — which are congested on many other competing platforms. Here is a comparison table of Avalanche and some of the prominent platforms:

In addition to its high scalability, Avalanche was also built to solve another big problem facing blockchain-based systems today: interoperability. The platform achieves this by allowing blockchains within both a subnet and between subnets to communicate with each other, allowing them to complement each other and supporting cross-chain value transfer.

The platform is also remarkably inclusive. While many PoS blockchains only allow a select few validators to participate in reaching consensus, Avalanche allows anyone to stake at least 2,000 AVAX join.

Avalanche completely eliminates the concept of “slashing” — user stakes are slashed or penalized if their node misbehaves or malfunctions.

Up until now, Avalance's biggest rival is still Ethereum – blockchain platforms currently dominate the space DeFi. Although Avalanche supports Ethereum Virtual Machine (EVM), it uses a different consensus mechanism to secure the network and also supports cross-chain value transfer without bridging.

What can you do with Avalanche?

Avalance allows individuals and companies to easily deploy their own purpose-built blockchain, whether for private (permission-required) or public (permission-free) use-cases. .

It is unique in that it uses a combination of multiple custom-built blockchains, in addition to the PoS consensus mechanism, to achieve an extremely decentralized and powerful platform for developers to build on.

Thanks to the compatibility with the toolkit of Ethereum, developers can easily port dApp their Ethereum to Avalanche and easily launch a wide range of decentralized applications on the platform. Applications can run on their own standalone Avalanche blockchain, allowing developers to control how they are secured and function, and who can access it.

These capabilities have fueled development activity on Avalanche in its short history, and there are now numerous applications using Avalanche's technology — including an application for private securities (Security). ), prediction market (Prosper) and stablecoins (Bilira – one stablecoins Turkish Lira).

Where and how to buy AVAX?

Avalanche (AVAX) tokens can be purchased and traded on many popular exchanges such as Binance, OKEx, Bitfinex, Huobi Global, CoinEx, Paribu, WazirX, OKCoin and Hotbit.

What is DEX Pangolin?

Pangolin is a decentralized trading platform (DEX) is run by the community supported by Ava Labs.

​It's a kind of DEX operates in an automated market maker fashion (AMM) — meaning it uses algorithms instead of order books for pricing. Pangolin is an important part of the ecosystem DeFi in development by Avalanche and built to demonstrate the capabilities of the Avalanche platform.

Built on Avalanche, Pangolin has extremely low fees and fast performance. It is also compatible with all tokens on Avalanche and Ethereum, providing users with a wide range of liquidity pools to trade.

Avalanche announced in February 2021 that:

“The Pangolin DEX, a community-run DEX for assets on Avalanche and Ethereum, has just launched on Avalanche. Pangolin will showcase Avalanche's speed and cost effectiveness, providing an outlet for DeFi users currently overwhelmed with high fees and network congestion."

Like many decentralized exchanges like AMM Elsewhere, Pangolin also has a liquidity mining incentive program that allows liquidity providers to earn the platform's native governance token — called PNG.

Future

Avalanche appeared less than a year, but it is growing very fast. Proof of this is that there are a lot of developments and product releases for new features.

One of the key developments is the Apricot upgrade, which will bring a host of improvements to Avalanche. These include “verifiable cuts”, which allow nodes to get online quickly; freezing and unfreezing functionality for token issuers; native ERC20 support.

Layer 2 Injective Protocol will also integrate with Avalanche to bring a diverse range of interoperable derivatives to the platform.

Additionally, there are plans to add a “Privacy VM” privacy-oriented virtual machine. This virtual machine will eventually enable private smart contracts to work on Avalanche, one of the most important upgrades in Avalanche's roadmap.

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